NHS chief exec issues challenge to Fds

23 Nov 06
The chief executive of the NHS in Wales has called for an end to deficits in the principality's health boards and trusts and challenged finance professionals to exert greater influence and leadership.

24 November 2006

The chief executive of the NHS in Wales has called for an end to deficits in the principality's health boards and trusts and challenged finance professionals to exert greater influence and leadership.

Ann Lloyd told delegates at the CIPFA in Wales annual conference in Cardiff on November 17 that the deficits 'make us smack of incompetence'. She was severely critical of the projections compiled by finance staff, suggesting that they were often unduly pessimistic.

'I am getting heartily sick of finance directors and their staff chucking the kitchen sink into their projections. I'm not saying there is no financial challenge out there, but for goodness sake let's have a responsible discussion about the finances rather than some projection that won't stand up to scrutiny.'

Health bodies in Wales, like their English counterparts, have struggled to eliminate historical deficits. In 2005/06 the Welsh NHS had an accumulated deficit of more than £100m. It is currently struggling to cover the increase in salary costs following the introduction of the Agenda for Change pay programme.

Lloyd, who is also director of the Assembly's Health and Social Care Department, said the Welsh NHS had to modernise and become debt-free, but progress was hampered by a tendency to work in silos.

'Even between health organisations, there is a massive distrust, but an awful lot can be done by finance directors to dispel this,' she said. 'I am going to challenge you to show the leadership that's necessary in these very difficult times.'

However, she had damning criticism for the current quality of reports from finance directors, which were often 'obscure to the nth degree'. They did not provide non-executive directors and chief executives with the quality of information required and meant that FDs were not properly held to account.

She said that 'guts, intelligence and a commitment to change' were required to turn the finances around and modernise services. The NHS needed to be less defensive and more open.

'We have got to show that it is possible to make changes in Wales,' she said. 'Change has got to be possible because 2009 is hurtling towards us and some of our services are unsustainable after 2009.'

Other speakers at the conference included Minister for Assembly Business Jane Hutt, Sir Jeremy Beecham, chair of the recent review into local services in Wales, and Christine Daws, director of finance at the Welsh Assembly Government.

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